Power-One, Inc. announced that for the third quarter ended September 28, 2008, net sales were $140.1 million, an increase of 7% from $131.5 million in the third quarter of 2007. Net loss was $0.02 per share compared to a net loss of $0.07 per share for the same period last year.
The revenue increase for the quarter was driven by continued strength in the renewable energy business. Bookings of $121.4 million in the third quarter of 2008 increased 3% over bookings of $118.1 million in the third quarter of 2007. The company ended the third quarter of 2008 with approximately $93 million in 90-day backlog, up from approximately $84 million for the same period last year.
Gross margin improved to 21.4% in the third quarter 2008 compared with 21.0% in the third quarter of 2007 as a result of cost improvement initiatives and increased sales volume, partially offset by manufacturing inefficiencies. For the third quarter of 2008, operating expenses decreased to 21.3% of net sales, compared with operating expenses of 24.3% of net sales for the third quarter of 2007. Included in the operating expenses for the third quarter of 2007 were restructuring and asset impairment charges of 1.1% of net sales. Net loss decreased to $1.7 million for the quarter from a net loss of $6.5 million for the same period last year.
Richard Thompson, CEO, commented, "As expected, operating performance improved in the quarter as a result of our growing renewable energy business and benefits of our on-going process improvement initiatives. Results were within expectations and generated break-even operating income and a narrower net loss. For the fourth quarter we are projecting a wider performance range than normal due to unclear end-user demand; however, we will continue to pursue operational efficiencies throughout the company to continue improving margins and working capital metrics. We will also increase investment in our renewable energy business to leverage both near-term and long-term growth opportunities."
